tl;dr - A string of Hong Kong-listed stocks plunged without warning in afternoon trading, the latest shock losses to sideswipe investors in the world’s fourth-largest equity market. “Some of these companies might have cross-shareholdings in each other and when one of those starts to tumble, it brings down other related stocks,” said Hao Hong, chief strategist with Bocom International Holdings Co. “It’s likely more similar stock crashes could happen this year. A lot of share pledges in Hong Kong are underwater, and as soon as the positions are liquidated it triggers an avalanche.”
Submitted January 17, 2019 at 07:38AM by WhenLuggageAttacks http://bit.ly/2ROiJ4J
